- Use a basic health insurance policy to wade off any health-related risks you face
- A basic health policy is affordable and not very expensive, make sure you have one
- A fixed benefit health insurance plan provides lump sum on diagnosis of critical illness
- Combination of basic health insurance and fixed benefit health insurance provides complete financial security against health conditions
A few days of hospitalization can easily set you off by several thousands, and even a few lakhs depending on the nature of the illness leading to the hospitalization. Understandably, one should be worried about the financial consequences of visit to the hospital. But, with health insurance being affordable, do not take chances with your finances by being exposed to health-related risks that can otherwise be easily insured. Quality healthcare is affordable at a reasonable price, if one opts for health insurance.
A health insurance plan can help you be ready for any health-related eventuality. It acts as protection against the risk of incurring high medical expenses. In times of need, the health insurance plan would pay for your medical or surgical expenses. The amount incurred is either paid directly to the hospital through cashless transactions or reimbursed after you raise a claim. This can provide you with a sense of safety and security since unforeseen medical emergencies can be met without any hassle or stress.
A basic plan
The simplest option is sometimes the best. The individual health insurance policy is perhaps the first brush with health insurance that most people have. These plans are designed to insure an individual against illnesses and medical expenses. It covers hospitalization and surgical expenses till the cover limit is reached. This cover limit is the sum assured by your insurer. The cost of the policy, which is the premium that you pay, depends on the size of the policy cover, your age and your current health condition.
There are also policies that pay a defined daily cash benefit for the number of days you are admitted to a hospital. The daily cash benefit plan is a defined benefit policy, which pays out a defined sum of money for every day of hospitalization regardless of actual costs. For instance, the hospitalization costs for a day may be Rs 2,000 per day and the defined daily limit of the policy could be Rs 1,600 per day, in which case you will receive the latter. On the other hand, if the actual hospitalization cost is Rs 1,000 per day, you will still receive Rs 1,600 per day.
There are then policies which pay out on detection of a critical illness. These are fixed benefit health insurance plans which pay a lump sum amount on diagnosis of predefined critical illnesses and medical procedures. The illnesses are specified at the outset. By nature, critical illnesses are high severity and low frequency and cost of treatment is higher compared to regular medical problems. It covers conditions like heart attack, stroke and cancer, among others.
“Don’t be daunted by rising healthcare costs, opt for a health insurance policy to meet your healthcare expenses”
As a policyholder, understand the cost of the policy, which is nothing but the premium you pay for it. Then, you should also know the amount the policy covers, deductibles and exclusions on the policy and the benefits you receive as a policyholder. Treat the premiums you pay for a health policy as an investment and not cost; because you do not know when you will need to depend on the policy to come to your financial rescue.
Choosing a policy
When it comes to selecting a policy, there are several insurers and types of policies to choose from, which could be complicated. Do not be intimidated by the choice and the jargon. One way to tackle both these elements is to understand the product and the benefits it offers before purchasing it. Next, define your needs — you need a basic health insurance policy, which broadly covers all forms of hospitalization-related medical conditions. Once this need is addressed, look for fixed benefit health insurance policies which offer covers you against critical illnesses.
The basic health insurance policy helps you in the time of need at an affordable cost. The most important aspect of a basic health insurance policy is the cashless treatment that it offers when you need hospitalization. The concept of cashless hospitalization is such that the policy will pay for your hospitalization, within the policy limits when you are hospitalized.
Mostly a basic health insurance policy comes with a mention of network hospitals, where the policy is valid. What this means is that when a policyholder is admitted to any of these hospitals, the policy comes into play by taking care of the financial implications of the hospitalization. This is very useful a feature because the policy facilitates in paying the expenses for health risks arising due to an unforeseen emergency leading to hospitalization.
With age, one should add a basic critical illness cover which would pay out a lump sum on detection of the critical illness. With the prevalence of heart diseases and cancer on the rise, having a critical illness cover is a must. Such policies supplement the insurance that is available on a basic policy. Remember, a health insurance enables you to leave your financial worries with the insurer as you avail the best medical help and treatment to get back on track with your life. Take advantage of the affordable health insurance plans and keep the worries of treatment expenses at bay.